Markets

Kinder Morgan and TrailStone Units Ink Joint Venture LOI

A Kinder Morgan Inc. 's KMI affiliate has inked a joint venture (JV) letter of intent (LOI) with a subsidiary of the TrailStone Group. The agreement pertains to the formation of a Mexican natural gas marketing company.

The combination of North American gas supply and transportation following the JV between the Kinder Morgan and TrailStone units will make way for the delivery of competitively priced gas supply to industrial markets and power generators in Monterrey as well as other markets. The natural gas supply will be accessible through the national system of gas pipelines to be owned and operated by CENAGAS.

TrailStone will manage and operate the JV. The JV is expected to commence operations from the first quarter of 2016, subject to regulatory approvals.

Both participants of the JV are aggressively involved in discussions with the U.S. producers and end-users in Monterrey as well as customers associated to the Mexican national grid. The JV will offer these customers a bundled natural gas supply package that can comprise Henry Hub or Houston Ship Channel-based pricing options as well as swing and storage services.

Kinder Morgan is one of the largest energy infrastructure companies in North America. The company operates approximately 80,000 miles of pipelines that transmit natural gas, refined petroleum products, crude oil, carbon dioxide and additional products. It has more than 180 terminals that store petroleum products and chemicals as well as ethanol, coal, petroleum coke, gasoline, jet fuel and steel.

The company operates through its business segments that include Natural Gas Pipelines, Products Pipelines, CO2, Terminals and Kinder Morgan Canada.

Kinder Morgan currently carries a Zacks Rank #3 (Hold).

Some better-ranked players in the energy sector are FutureFuel Corp. FF , Paragon Offshore plc PGN and Seadrill Partners L.P SDLP . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

PARAGON OFFSHOR (PGN): Free Stock Analysis Report

KINDER MORGAN (KMI): Free Stock Analysis Report

FUTUREFUEL CORP (FF): Free Stock Analysis Report

SEADRILL PTNRS (SDLP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

FF KMI

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More